May 16, 2011

Narrow Price Ranges on Gold and Crude to Open our Week of Day Trading

“When we have practiced good actions a while, they become easy;
when they are easy, we take pleasure in them;
when they please us, we do them frequently; and then,
by frequency of act, they grow into a habit.”
We open our week this morning with not much news over the weekend.  President Obama extended some of the drilling leases in the Gulf Of Mexico to the pre-spill agreemens before BP came in and wreaked havoc on the US shores.  We also saw more bombing in Libya over the weekend and the leader of the IMF arrested in NYC.  Overall, nothing too important that will be affecting our trading this morning.
Looking at the news this morning we can see a pretty busy week, getting us started today early with 830am EST news out of Canada and the US.  Im always watching for CAD-related news so we can watch Crude Oil volatility rise.  News this morning at 830, 900, and 10am means we will be looking for opportunities to trade rather early, but as always , I’m watching the speed or the orders coming into the market along with  average true range (ATR) to find the best times to trade the markets today.
Here is  the economic news for today’s trading session today
8:20 Gold & Currencies OPEN
8:30 CAD News, watching Crude Oil Closely
8:30 Empire State Manufacturing Survey
9:00 Crude Oil OPEN
9:00 Treasury International Capital / TIC Flow
9:30 US Market OPEN
10:00 Housing Market Index
10:30 E-mini Reversal
11:00 Transition into Lunch
11:30 European Close / Live Webinar in our Trade Room
We Love Your Feedback!  Read and Post it here J
Live Trade Room is open, come join us!
Click here for helping logging into the Trade Room
Related Posts

Grind-Break Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

Momentum Channel & Range Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

Fractal Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

Head-Fake Trading Strategy | Crude Oil, Emini, Nasdaq, Gold & Euro

Trading with “Context” | Crude Oil, Emini, Nasdaq, Gold & Euro

Stop Missing the Best Trades | Crude Oil, Emini, Nasdaq, Gold & Euro

Earn More with Confirmation | Crude Oil, Emini, Nasdaq, Gold & Euro

4 Ways to Profit from Reversals | Crude Oil, Emini, Nasdaq, Gold & Euro

    schooloftrade

    Click Here to Leave a Comment Below

    Joseph James - May 16, 2011 Reply

    955am est
    – We wait for the news @10am est today regarding the Housing Market Index
    – In the meantime, we have crude oil trading around the BMT on the 34r chart, which tells us to beware.
    Let’s review the 34range chart on crude oil:
    – Price Wedge, we are at the highs
    – Sideways Range from 100.70 down to 97.09
    – We see the PHOD is above, and the PLOD is below, this means INSIDE TRADING DAY
    o Treat this as a sideways market that will NOT breakout, so sell the highs and buy the lows, trade INSIDE the range from Friday
    – We have major levels of resistance at 100.70, 99.85, 99.52
    – We have levels of support below us at 97.67, 97.09, 95.55
    – These levels may not be used today, but if we need them, ill be happy I have them handy.
    Lets plan our attack on crude oil futures:
    If prices rise:
    – Selling resistance first, and then buying pullbacks with new higher highs
    – Never buying the highs, I wait for pullbacks
    – Selling 99.40, 99.55, 99.73, and 99.85
    – Avoid the big round number of 100.00
    – Selling 100.49, 100.70 and avoiding the 101.00 BRN
    – With the DX in a bear channel with new LL’s we can say the LONG trades will likely be the higher % position with the dollar trending down
    If prices fall:
    – I’m buying support levels first, and then selling new lower lows with retracements.
    – I will not sell the lows, wait for a retrace off the new lows and then look for entry rules to confirm.
    – Im selling the highs of the wedge below 98.75
    – Im avoiding the BMT 98.69 and the OPEN 98.74 because these levels will be sloppy
    o I am aware these levels (Open/BMT) are at the highs of the wedge, making it more difficult to sell the highs
    – Buying 98.37 the PLOD from Sunday (not as important as the PLOD from Friday)
    – Buying the lows of the wedge at 97.67 which is also the current LOD
    – Buy major support at 97.09 the PLOD from Friday as well as the support at 96.16 and down at 95.55 the lows of the major wedge.

    Leave a Reply: